Indiana’s Senate Tax and Fiscal Policy Committee have approved a proposal to cut taxes imposed on data centers in order to lure big business to the state, tweaking a proposal that previously passed the House. House Bill 1405, which was approved 14 – 0 on Tuesday, would exempt data center equipment and most electricity used at a facility from business personal property tax as well as the state’s seven percent sales tax.
GovTech reports that a developer will only be able to escape these taxes if they invest up to $150 million into a project within five years. Developers are also required to purchase at least 75 percent of labor and construction materials used in a project through local vendors – a new addition to the bill added by the committee. If a project meets these requirements it will be exempt from the taxes mentioned for 25 years. But, one state representative has claimed this period isn’t long enough to reel in data center giants like Google and Amazon.
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